Vietnam c.bank warns P2P lending may trigger black credit
The SBV stressed that abuse by individuals or organizations of the P2P lending platform for capital mobilization is illegal.
The State Bank of Vietnam (SBV) warned the form of peer to peer lending (P2P), under which lenders and borrowers connect via apps, is being exploited for money lending at sky-high interest rates, far exceeding the ceiling rate of 20% per year pstipulated in the Civil Code.
Illustrative photo.
|
Moreover there remains unclear about the profit and risks for concerning parties involved in this lending model, according to the SBV. In case of dispute, lenders may lose their money, as P2P companies are not bound to ensure the rights of users.
The SBV also pointed to potential threats of leaking privacy data, cyberattack, lending used for money laundering and tax evasion.
In some cases, P2P companies are using its platform as a way of mobilizing capital with high interest rates, known as multi-level marketing.
The SBV stressed that abusing the P2P lending platform for capital mobilization by individuals or organizations is illegal.
The act of mobilizing capital through credit institutions must follow the Law on Credit Institutions and Law on the State Bank of Vietnam. However, the online P2P lending is considered civil transaction and out of the jurisdiction of those two laws.
The SBV warns citizens and enterprises to remain cautious about participating this lending platform, while encouraging people to access capital through the banking channel.
Additionally, the SBV is working with relevant government agencies for a legal framework managing the P2P lending and new transaction model on digital platform.
08:08, 2024/10/05
Building Hanoi's smart city with smart banking
In Hanoi's smart city development strategy, smart payment and open banking ecosystems are critically important.
21:34, 2024/09/19
Vietnam stock market clears major legal hurdle to potential upgrade
Starting November 2, foreign investors will no longer be required to pre-fund 100% of their transactions, promising the removal of a major roadblock for Vietnam's market upgrade process.
17:29, 2024/09/01
Cashless parking in Hanoi: Good model fuels smart transport
Hanoi’s leaders believe that all that's left to do is act with the ultimate goal of serving people from smart transportation, armed with the mindset and solutions of a new global vision and thinking.
22:36, 2024/08/26
Banking sector dominates Vietnam’s corporate bond market
The increase in bank bond issuance is largely driven by the need to comply with the State Bank of Vietnam’s capital adequacy requirements.
17:41, 2024/08/06
Prime Minister expects lending to grow by 15% this year
Key challenges for the remainder of the year include lowering interest rates, providing low-cost credit, and adopting cost-cutting technologies.
17:37, 2024/08/06
Vietnam, Singapore strengthen partnership in stock exchange operations
The two sides will focus on cooperation in digital transformation, cybersecurity, tax management, and market operations.
- HSBC raises Vietnam’s GDP growth forecast to 6.5% in 2024
- Hanoi to push for smart tax agency
- Taxes revenue from online shopping in Vietnam nearly triple in H1
- Banks inject over US$20 billion into economy in June, surpassing five-month total
- Corporate bond issuance almost triples in H1
- Vietnam climbs 11 places in budget transparency ranking